PRIVATE FOREX TRADING FIRM
Cevntun Trading Partners
Small Heading
The main differences with Set-up-Retest pairs is that no Set-ups can form under the Level Lines and only one Retest peak can form that can be paired with a Set-up above the Level Lines.
If a Set-up peak forms above the +70 or below the -70 and the retesting peak forms below the +70 line or above the -70 Level Lines then that is the final Set-up-Retest pair for each visit of the CCI indicator above the Level Lines.
Once a peak has formed that is under the Level Lines there can no more Set-up-Retest peaks until the CCI indicator line has again crossed the +70 level line for a sell trade or the -70 level line for a buy trade and made a new Set-up peak.
Hopefully the image and explanation below will help make this easier to understand.
Under The Level Lines
Explanation of image above:
Final sell pairing (white).
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First there was a failed sell Set-up peak (1) at the +70 Level Line.
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This is followed by the new sell Set-up (2) that caused peak 1 to fail.
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The next peak (3) is the Retest of the new sell Set-up peak 2.
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As it's above the +70 Level Lines it now becomes a Set-up for the Retest peak (4).
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The Retest peak (4) is below the +70 line so Set-up-Retesting pairs stop here.
Final buy pairing (yellow).
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A new buy Set-up peak (1) forms below the -70 Level Lines.
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The next peak (2) is above the -70 line so Set-up-Retesting pairs stop here.
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Even if there is another Retest peak (3) that conforms to the rules, pairing stops at the first Retest peak (2) under the level lines.
Here we see both a final buy Set-up-Retest pair and a final sell Set-up-Retest pair
